Modern business owners need to be very careful when planning their budgets. Like it or not, a huge unexpected cost could be just around the corner. For that reason, it’s always a good idea to put some money aside in case the worst happens. Most new company bosses are unaware of the type of unexpected expense that could affect their company. So, we’ve highlighted some of the most common today. Educating yourself about the possibility of these costs affecting your firm might make you understand how important it can be to leave some extra funds in the bank. At the end of the day, any of the potential expenses listed below could bankrupt you in days. That is why it’s also vital that you obtain the right insurance policies.
If you fail to deal with health and safety matters effectively, you shouldn’t be too surprised if someone brings a personal injury claim against your company. Anyone who suffers an injury caused by yourself is more than eligible to make a claim, and most of them are successful these days. You can’t blame the victim for calling a slip and fall attorney when the incident was your fault. They are entitled to the compensation they deserve, and so specialist lawyers are required. However, giving it to them could have negative financial consequences for your business. So, you need to make sure that doesn’t happen. Simply deal with health and safety properly, and everything should be okay.
Fines / Legal
It is entirely possible that your business could be taken to court by other companies. It could result in you having to pay lots of fines and legal costs. That is especially the case if you’re selling an original product for which you are yet to receive a patent. Either that or you might have used a name for your brand that is already being used by someone else. The reasons you might end up in court are endless, and so you need enough money set aside to cover the costs. With a bit of luck, you’ll never end up in the dock. However, there is no way of knowing what the future might hold.
While you should always try to deal with your employees in a fair manner, some of them will raise disputes from time to time. That tends to happen when you decide to sack someone, and they claim unfair dismissal. Again, you might find yourself in a courtroom style situation, and you might have to pay for professional legal representation. If the employee in question wins their claim, you will have to provide them with a substantial amount of compensation. There is nothing you can do about that. Once the tribunal makes their decision, it is final.
Planning for every eventuality can be tough when you don’t know what might be around the corner. Even so, you should always put some money aside to help deal with the costs involved in all the expenses listed in this post. The last thing you want is to use cash you saved for marketing or advertising.